All Forum Posts by: Chris Low

If you're well known locally, I would stick with a familiar name if you intend to be working in your home area.

Well, I suppose it could be a good thing. Sounds like you're in So Cal where housing is pretty dense so the number of homes you are driving by and the number of leads you're getting seems reasonable (as opposed to more rural areas or areas with much larger lots). However, if you're finding a lot of leads in a short amount of time, I would be thinking about the state of the community as a whole. Is it on the upward trend or downward? If you've hit on an area that has a ton of distressed houses and not a lot of investor competition, you could be ahead of the curve. But if you're in a distressed community that is spiraling downward, it might signal the opposite. Just take the entire local market into consideration before making any offers. But, generally, 20 leads in an hour is a good return on your time.

Anybody can choose to sell their house for less than it's worth, but good luck getting a lender to fund it if you're trying to pay more than it's worth. So I wouldn't worry about the appraiser. It's probably just trying to protect the seller from later claiming they were duped because they accepted less than the appraiser said it's worth. As for the legal description of "arms length" as used in this context, I'd just run it by an attorney, which is a good idea anyway.

Is the property an REO (bank owned) or is the owner still living in the property? If they're still living in it, then it sounds like it would be a short sale. If it's already an REO and the price tag is too high, it's a whole different challenge. Often, the banks come out with unreasonable list prices. Sometimes the property has to sit on the market for a while before they get real and adjust it downwards. I don't know for sure, but I have a sense that it helps to submit an offer where you think the offer needs to be, even if you know they're going to reject it because at least it represents real market feedback to the REO asset manager.

Your County Clerk or County Assessor's/Tax Collector's office will have contact info for the owner of record and it's a matter of public record so you can have access to that info. Some are more modern and you can actually find it online. Some will require a trip to their office to do it in person. I usually don't find phone numbers when searching, but you will get the last known mailing address.

@Ken Jones - glad to help. Good luck to you!

Both my wife and I work full time jobs and are managing and doing much of the work on a flip currently. On the one hand, it's not ideal and it wasn't our original plan, but on the other hand, you can't beat the first hand knowledge and experience. I have a construction background so I think it's pretty feasible relative to my skill level, but if you haven't worked in construction or done a lot of DIY work, it's probably not recommended. Definitely identify a contractor who can help you out. If you're asking one to serve as your General Contractor and schedule and oversee subs, you can expect to pay more. If you are willing to work as the GC and handle all the scheduling and work of the subs, you won't be paying the GC overhead so you'll save a little (but could cost yourself more in the long run if you don't know what you're doing.) If it's your first and you're not experienced at swinging a hammer, it's probably worthwhile to hire a GC. You'll save money in the long run.

As for working with a Realtor, be cautious. Find one who is used to working with investors because it's very different than working with buyers who are buying retail. He/she needs to understand that you'll look at 50 properties, offer on 10 and maybe land 1. That's a lot of time and legwork for your Realtor and not all of them are willing. Also, if you're in a really competitive market, you need a Realtor who can set up alerts off the MLS for properties that meet your criteria and one who is available right away to show you properties ASAP or you'll get beat out by other investors. Rapid response from your Realtor is essential. Once you get a feel for looking at properties and estimating costs, you might even be able to submit offers sight unseen, which will save you both time. IF you get into contract, you'll have the inspection period to run your numbers again and you can back out if you need to. Then be kind to your Realtor. If you DO land one, make sure he/she gets the listing when it's time to sell. It's only right.

Don't shy away from acting because you have a FT job. Most people can't make the leap into FT investing right away and that W2 income will really help you get financing. Just dedicate yourself to getting up early and staying up late to "work" your RE business and it will happen for you!

We've never had trouble finding a lender for property under $100,000 but we have had some balk at loans below $60k. That said, we never go through big banks - always local, credit unions, or mortgage brokers who can pull from a variety of lending sources including conventional.

I've talked to some people in the Reno, NV area and it seems like that is an emerging market. Particularly if Tesla moves forward with their huge factory investment that is proposed to bring 5,000 jobs to the area. Housing is tight in Reno itself, but nearby cities have upside potential. Just a thought.

Charles, if you leave your current brokerage, what areas will you be investing or lending in? Will you go into far northern CA or stay in the central valley?